c. include a great deal of detailed information that is potentially useful only to a financial analyst making a detailed appraisal of the future prospects of the entity.

d. are used by many entities to hide information from the reader of the financial statements by including in the explanatory notes information that should be shown in detail on the financial statements themselves.

8.
Significant accounting policies are described in the explanatory notes to the financial statements because:

a. there isn't enough space for them to be included in the captions of the financial statements.

b. if the accrual basis of accounting is used, "matching" of revenues and expenses may not take place.

c. the reader must be aware of which of the alternative generally accepted accounting practices have been used.

d. none of these.

9.
Management's statement of responsibility:

a. explains that the entity's financial statements are the responsibility of the entity's auditors.

b. states that the financial statements are free of significant error.

c. affirms that management is responsible for assuring adherence to internal control policies and procedures.